The project in the Neuquén Basin is advancing at full speed. Martín Bengochea describes the effort behind turning what was once an almost desert-like area into a productive site that will eventually host 400 wells. In the video, the key people behind the project tell the story firsthand.

Los Toldos II Este spans 78 square kilometers. There, Tecpetrol is developing an unconventional oil field that is expected to reach production of 35,000 barrels per day by the end of the first quarter of 2027, rising to 70,000 barrels per day by July that same year. Martín Bengochea, Vice President of the Neuquén & Vaca Muerta Basin, explains why this project represents such a major milestone for both the company and the country.

What makes Los Toldos II Este special?

Its scale and the size of the initial investment. Like any greenfield development—one built from scratch—it involves a relatively long lead time between design and full-scale execution, often spanning several years. In terms of the number of people involved, the CAPEX impact, and the coordination challenges, this is one of Tecpetrol’s largest and most significant projects, comparable to what was achieved at Fortín de Piedra at the time.

What stage are you currently at, and what are the next key milestones?

We are currently in the construction phase, focused mainly on surface facilities such as plants and pipelines. Tecpetrol has a team fully dedicated to the project, while Techint E&C is leading construction activities. Overall progress is around 30%, and the project is advancing on schedule. Drilling began in January, and we currently have three rigs operating in the area. The next key milestone will be the start of the first pad completion campaign toward the middle of this year. The full development is expected to include around 400 wells, of which 12 are already operational. As with any project of this scale, unforeseen challenges can arise. The goal is to respond quickly and recover any delays. From a production standpoint, we remain on track to meet our 2027 targets.

How does Los Toldos II Este fit into Tecpetrol’s growth in recent years, and what are the main challenges?

Los Toldos II Este represents a quantum leap for Tecpetrol. Managing a project of this magnitude requires constant monitoring. We track progress closely to detect any deviations early, assess their impact, and determine whether adjustments are needed. All project components are interconnected, so a delay in one phase can have knock-on effects across the entire operation, making coordination and clear communication across teams essential. Cost control is another critical factor. This is a really gigantic project, so the investment is considerable and financial discipline is key. At the same time, flexibility is crucial: when deviations arise, we need to respond quickly and adapt the schedule to keep the project on track.

Given Tecpetrol’s experience, what lessons learned from Fortín de Piedra are being applied, and what challenges are you facing for the first time?

Since the launch of Fortín de Piedra, we’ve accumulated a great deal of experience, much of which is now integrated into our day-to-day operations. In fact, that learning process is ongoing, because you never really arrive at a definitive formula. For example, we’ve been able to apply key insights into field development, such as well sequencing, spacing, fracture design, and other critical variables. This allows us, for example, to develop LT2 across four levels simultaneously, while working to minimize the generation of child or infill wells. That said, not everything can be directly transferred. Geological conditions and production dynamics vary from one field to another, so part of the challenge at Los Toldos II Este is to build new knowledge as we gain a deeper understanding of the reservoir.

How does this quantum leap affect Tecpetrol's internal organization?

While this is significant growth, the fact that we have developed Fortín de Piedra and reached a certain scale makes it easier to integrate these new ventures. I remember Fortín de Piedra back in in 2017, when we had to set up many capabilities—such as fracture operations or sand logistics—almost from scratch. Today, we have that know-how in place. The challenge now is execution at scale. That means establishing efficient processes, closely measuring performance, and building teams that work in a coordinated way. There is also a strong focus on empowering our people to take decisions. As the organization has grown, it is no longer possible to oversee every detail centrally. Each area must operate with a high degree of autonomy, while remaining aligned with the company’s overall guidelines, timelines, and objectives.

What sets Tecpetrol's teams apart when they tackle complex projects like this one?

Professionalism, commitment, and technical expertise. You see it across the organization, from interns and young professionals to colleagues with more than 30 years at the company. Clear, well-communicated goals are essential: everyone needs to understand where we are heading and what success looks like. From there, execution depends on strong planning, close relationships with suppliers, and the ability to respond quickly to unexpected changes. Our commitment to safety and quality is a defining factor.

These projects also demand long hours and sustained effort, which makes teamwork critical. Building strong relationships within teams and across functions creates a sense of shared purpose. That camaraderie—and a positive working environment—helps people stay engaged and perform at their best.

We’re really lucky to be part of something unique. Day to day, it’s easy to lose sight of that, but we are building a project of enormous scale that will deliver tangible benefits for the country.

What role do the value chain and the domestic industry play in Los Toldos II Este?

Vaca Muerta has a strong regional impact, but its significance extends nationwide, both from an industrial perspective and through the network of direct and indirect services it supports. It is expected to involve an investment of around USD 3 billion and, at peak activity, will employ up to 4,000 people. Its impact will be felt not only in Neuquén, but across the country. In fact, we are already working with 700 domestic companies providing all the equipment, materials, and services that we need.

What value does working collaboratively within the Techint Group add?

I’ve had the opportunity to work with other Group companies on several projects, including internationally, and the key is alignment. In this case, Techint E&C is the main contractor for building the facilities, and its objective is fully aligned with ours: to deliver them on schedule. That shared focus, combined with a unified management approach and a strong foundation of trust, enhances our execution capability and sets us apart. Safety is also a core priority. We need to be certain that the 4,000 people who come to work on this project every day return home safe and sound to their families.

What benefits does Los Toldos II Este bring to Argentina, now and in the future?

Argentina already produces more oil than it consumes, generating a surplus. Projects like Los Toldos II Este and the broader development of Vaca Muerta, will increase export volumes and bring in foreign currency. Looking ahead, the project will require annual investments of around USD 400 million, sustaining job creation, supporting SMEs, and driving broader economic activity.

On a personal level: How do you manage stress on a project that’s getting so much attention—not just from Tecpetrol, but from the Group and the industry as a whole?

You get used to it (laughs). When you're caught up in your work and daily routine, it’s easy to lose sight of the overall scale of the project. Furthermore, while there are always challenges and countless tasks to manage at Los Toldos, this isn’t the effort of a single person or a small group. It’s the result of many teams and professionals working together with a shared goal, making sure everything goes as well as possible. The project doesn’t depend on any one individual, it moves forward because of the collective effort behind it. That’s what makes the difference: the strength of the team.